The 2019 Business Mileage Allowance from the IRS


It is npt decided yet fo rhe tyear 2019. It is usually announced sometime between the end of November to the end of December

It's the amount of tax deduction we can take for miles driven for legitimate business, medical, moving or charity in this year. The IRS mileage rate for business travel was set for the year 2018 at 54.5 cents per mile.

The bonus is that you can deduct parking fees and tolls as well as the amount from the mileage allowance.

Use a Mileage Log

Download a free (928) 338-2785 here.
You will have to write the miles driven for the purposes that you are planning to take the deduction on a Mileage Log when the trip happens.

Technically don't do it when you are driving but after the trip ends.
Then take your mileage log and enter the final miles from your odometer for the trip.

You of course would have to start by logging in the mileage before you took off for the trip.

For a deduction for business mileage allowance or a mileage deduction you must follow the rules that cover business miles.
If you are a sole proprietor and are using 4 or less business use vehicles at any one time you can do it.

Some folks don't realize that they are sole proprietors and it can be simple to figure out.
Do you get paid by customers but not receive a W2 form at the end of the year from them?

Do you fill out a W9 Form for them then receive a 1099 form at the end of the year stating the amount that you were paid ( If it is more than $600.00 per year)?

Do you for an example own a small ice cream truck and sell ice cream at the beaches etc on your own? Then you are a sole proprietor.

Do you have a disc jockey business and do weddings on Saturdays and a birthday party or anniversary here and there?

That income is sole proprietor income. Some sole proprietors are multi-millionaires so it isn't controlled by the amount of income at all

A more "dictionary" style definition of a "Sole Proprietor" is:

A sole proprietorship is not a partnership, but it is a type of business that is run and also owned by a single person. The business can have a business or trade name rather than use their own if he or she desires. There is no legal separation between the owner and the business. All profit goes to the owner. He or she must be responsible for appropriate taxes.

He or she is responsible for all debts and losses.
The owners own all of the assets and are responsible for all debts connected with the business.
A sole proprietor may use a trade name or business name other than his or her legal name.
What are the optimal conditions to use this Mileage Allowance tax deduction?
Now here are some points:

All of these points lead us to a vehicle with low overhead.
I like that best for my business, as the costs are lowest.
Well since there is another method called Actual Expense where you take a lot of the vehicle expenses and add them up at the end of the year for a deduction.
We have to decide if this is best for us before the year starts with a vehicle that we are going to use for the first time for tax deductions.
If you use the Actual Expense system then you can not change over to the Mileage Allowance system for the same vehicle.